Guys,
Am I right in saying that minority interest under IFRS is calculated as proportion not owned times equity of the acquiree, whilst under GAAP is calculated as proportion not owned times Fair Value of Acquiree?
Thank you.
I tried looking up the answer but I couldn’t find it. I don’t see any difference between how IFRS and GAAP would treat minority interest. There’s a difference in Goodwill treatment, but you’re talking about equity. Where did you read that?
Guys, there is a difference. Please go to page 138 of your L2 FRA books. The measurement of minority interest is a function of how you choose to measure goodwill (full of partial methods). There is a nice example starting on page 139 which explains the difference.
regards
Thanks Wojtek. I had actually made a note on this.
@ simply advised. under the partial goodwill method the minority interest is calculated as percentage not owned times fair value of net identifiable assets of the acquiree, whilst with the full goodwill method is calculated as percentage not owned times fair value of company (acquiree)
why in q no 32, CFA MOCK 2010 , cash is not reduced from Acquier cash balance when doing acquistion
Okay cool. Yeah, definitely a difference regarding goodwill.